NEW YORK (GenomeWeb News) – Norwegian molecular diagnostic firm DiaGenic, which has developed quantitative real-time PCR-based blood tests for Alzheimer's disease and breast cancer, said today that it has raised NOK70 million ($12.1 million) in a private placement.
In a statement, the company, which trades publicly on the Oslo Stock Exchange, said that the primary purpose of the fundraising is to "finance operating costs" and "secure the financial strength to achieve key milestones" toward the cash-flow break-even point, which is expected in the second half of 2012.
In an interview today with GenomeWeb Daily News sister publication PCR Insider, DiaGenic Chairman Henrik Lund said the firm has "set a new strategy" and "refocused" its business primarily on its neuroscience-related molecular tests as opposed to its oncology tests.
DiaGenic's tests, called ADTect and BCtect, examine a panel of what it considers to be 96 of the most important genes from a group of several hundred that cover a wide array of biological processes and change in response to the early stages of Alzheimer's or breast cancer. The tests are performed using Life Technologies' Applied Biosystems qPCR microfluidic cards run on an ABI 7900 HT system.
DnB NOR Markets acted as financial advisor in connection with DiaGenic's equity financing, which included existing and new undisclosed investors. The NOK70 million placement was subscribed approximately 1.4 times, DiaGenic said.
The company added that the shares allocated in the placement will constitute approximately 67 percent of the outstanding shares in DiaGenic after registration of a capital increase. Following this registration, then total amount of shares in DiaGenic will increase from about 70.2 million to 210.2 million, each with a nominal value of NOK0.05.
In addition, DiaGenic said that it has decided to propose a subsequent repair offering directed at existing shareholders of the company that did not participate in the private placement. DiaGenic is proposing to issue up to 60 million shares at NOK0.50 per share as part of this subsequent offering, and will call for an extraordinary general meeting on Oct. 29 to resolve both the private placement and subsequent offering.
An article with greater detail on DiaGenic and its strategic plans is available on PCR Insider.